Professionals who act as middlemen between a shipper and a freight service are known as truck load brokers. Shippers with a minimum of a full truck load of freight to transport are matched with a freight line that runs regular routes to the destination by this type of broker. Simultaneously, the broker works to secure the best rate for his or her client, earning a flat fee or a commission for the transaction.
Small businesses can sometimes benefit from using truck load brokers’ services. While many transportation companies provide excellent discounted rate programs for large companies with significant shipping needs, smaller businesses that ship goods on a more sporadic basis are frequently forced to pay standard retail rates. Working with a broker, who usually has volume discounted rates in place with various freight services, can actually save money on shipping, even for the most infrequent of shippers.
Another advantage of using truck load brokers is that you won’t have to waste time and money looking for better shipping rates. Brokers are always looking for more time and cost-effective ways to ship goods for their clients, so the company can focus on other aspects of the business while the shipment is being prepared for pickup. When a better deal becomes available, the broker usually informs the client of the lower rate offered by a new carrier and provides sufficient information for the client to decide whether or not switching carriers is a good idea.
Truck load brokers frequently do not require clients to sign long-term contracts. This means that a small business that only needs shipping services for a few months a year isn’t obligated to pay for services that aren’t used. Even if a contract is required, most brokers prefer to work with agreements that are for a shorter period of time, usually one or two years. This is beneficial to both the broker and the client, because changes in the shipping industry can and do occur, affecting shipping costs in general and negatively affecting the client or the broker.
While the majority of truck load brokers specialize in full truckload shipments, others will accept LTL (less than truckload) shipments. When this is the case, the broker will frequently attempt to combine shipments from multiple clients traveling in the same general direction, allowing the broker to still negotiate discounted shipping rates with a variety of freight carriers.